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The Nubank EC-1

Brazil is a rustic riven with financial contradictions. It has one of many largest and most worthwhile banking industries in Latin America, and is among the many world’s most developed monetary markets. Monetary transactions that will take days to course of in the US by means of ACH occur instantaneously in Brazil. This sophistication, nevertheless, masks a backward state of affairs tormented by appalling customer support, exorbitant charges and lack of banking entry for a lot of.

The nation’s monetary system is risky and sometimes leaves its residents with few or no alternate options. According to an HBS case study, “in December 2018 the rate of interest in Brazil for company loans was 52.3%, for shopper loans it was 120.0% and for bank card indebtedness it was 272.42%.” These charges are many multiples larger in comparison with figures in neighboring international locations.

Brazil’s banking system is a large market, and one ill-served by incumbents. If somebody might thread the needle of product growth, technique and political horse buying and selling required to construct a financial institution in a rustic the place it’s practically inconceivable for foreigners to personal or put money into a financial institution, it will be one of many nice startup and financial success tales of this century.

Nubank is on its option to realizing that goal. Its story is one in every of unmitigated success, even by the requirements of our EC-1 collection on high-flying firms and their hard-learned classes. Simply final week, this Brazilian bank card and banking fintech raised a $750 million spherical led by Berkshire Hathaway at a $30 billion valuation, turning into probably the most invaluable startups on the earth. It has 40 million customers throughout Brazil, in addition to Mexico and Colombia.

But, it’s a startup with a CEO and co-founder who isn’t Brazilian, didn’t converse the native language of Portuguese, hadn’t began an organization earlier than, and didn’t actually know lots about banking to start with. This can be a story of how uncooked execution, a “sooner, sooner” mentality and a fanaticism for making buyer expertise as pleasurable as a visit to Disney World can fully change the historical past of an business — and nation — eternally.

Our lead author for this EC-1 is Marcella McCarthy. McCarthy, who spent vital time in Brazil rising up and is trilingual in English, Spanish and Portuguese, has been protecting the LatAm and Miami ecosystems for TechCrunch with a watch to the disruption underway in these interconnected areas. The lead editor for this bundle was Danny Crichton, the assistant editor was Ram Iyer, the copy editor was Richard Dal Porto, and illustrations had been drawn by Nigel Sussman.

Nubank had no say within the content material of this evaluation and didn’t get advance entry to it. McCarthy has no monetary ties to Nubank or different conflicts of curiosity to reveal.

The Nubank EC-1 includes 4 major articles numbering 9,200 phrases and a studying time of 37 minutes. Right here’s what’s within the financial institution:

  • Half 1: Origin story “How contrarian hires and a pitch deck began Nubank’s $30 billion fintech empire” (2,350 phrases/9 minutes) — Explores the challenges and alternatives in Brazil’s banking system and the way co-founder David Velez assembled a singular crew to tackle among the richest banks on the earth.
  • Half 2: Co-founder dynamics “One girl’s drive to make a neobank as magical as Disney” (1,900 phrases/8 minutes) — Profiles Nubank co-founder Cristina Junqueira and the way she linked up with Velez, fundraised whereas pregnant and tailored her position to match the frantic tempo of scaling Nubank.
  • Half 3: Launching and scaling “How Nubank’s CX technique made it probably the most cherished digital banks” (2,700 phrases/11 minutes) — Analyzes the launch of Nubank’s now ubiquitous purple bank card, how the corporate scaled to function many individuals as doable, and its eventual foray into banking.
  • Half 4: Market enlargement and future “Which Nubank will personal the monetary revolution?” (2,250 phrases/9 minutes) — Evaluates Nubank’s enlargement into Mexico and Colombia, the aggressive panorama in Brazil, and the challenges that lie forward.

We’re at all times iterating on the EC-1 format. In case you have questions, feedback or concepts, please ship an electronic mail to TechCrunch Managing Editor Danny Crichton at danny@techcrunch.com.

How contrarian hires and a pitch deck began Nubank’s $30 billion fintech empire